There are no new tax obligations for people selling services or unwanted items online as platforms start sharing sales data with HMRC from January 2025
Online platforms to start sharing some user sales and personal data with HMRC from January 2025
HMRC confirms there are no changes to tax rules for people selling their unwanted possessions online
Guidance for online sellers can be found on GOV.UK
People selling unwanted items online can continue to do so with confidence and without any new tax obligations, HM Revenue and Customs (HMRC) has confirmed.
The reminder comes as online platforms start sharing sales data with HMRC from January 2025 – a new process that, when announced last year, generated inaccurate claims that a new tax was being introduced.
But whether selling last year’s festive jumper, getting some money back for a child’s outgrown baby clothes, or quietly offloading an unwanted Christmas present or two – absolutely nothing has changed for online sellers.
For anyone who is unsure if their additional income could be taxable just search ‘online platform income’ on GOV.UK to use HMRC’s free online tool or download the HMRC app and go to the ‘news’ section under the ‘communication’ tab for more information.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said:
We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due. As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for Self Assessment.
The new reporting requirements for digital platforms came into effect at the start of 2024. It is not a new tax and whether people are selling personal items on eBay, renting homes out on Airbnb or delivering takeaways through Just Eat – no tax rules have changed.
Those who sold at least 30 items or earned roughly £1,700 (equivalent to €2,000), or provided a paid-for service, on a website or app in 2024 will be contacted by the digital platform in January to say their sales data and some personal information will be sent to HMRC due to new legal obligations.
The sharing of sales data does not automatically mean the individual needs to complete a tax return. However, those who may need to register for Self Assessment and pay tax, include those who:
buy goods for resale or make goods with the intention of selling them for a profit
offer a service through a digital platform – such as being a delivery driver or letting out a holiday home through a website
AND generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year
HMRC wants to help people get their tax right. Anyone unsure whether to complete a Self Assessment tax return for the 2023 to 2024 tax year or not, can check on GOV.UK. If new to Self Assessment, they can register on GOV.UK.
HMRC is working alongside online platforms to ensure sellers receive clear guidance on their tax responsibilities.
Further Information
HMRC recommends that anyone who regularly sells goods or provides a service through an online platform, should find out more about selling online and paying taxes on GOV.UK. A link to the guidance will also be available on the HMRC app in the ‘news’ section under the ‘communication’ tab. This information will help them decide if their activity should be treated as a trade and if they need to complete a Self Assessment tax return.